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OPERATION OF THE LICENSING SYSTEM The licence fee is set annually by the Secretary Of State For Culture, Media And Sport by the use of Statutory Instruments . The BBC is authorised by the Communications Act 2003 to collect the licence fees. The monies received are first paid into the Government's Consolidated Fund . They are subsequently included in the 'vote' for the Department of Culture Media and Sport in that year's Appropriation Act, and passed on to the BBC for the running of the BBC's own services (free from Commercial Advertisements ), and for the BBC to produce programming for S4C. The licence fee is classified as a tax, and non-payment is an offence under criminal law. Since 1990, the collection and enforcement of the licence fee in the UK has been the responsibility of TV Licensing (an autonomous arm of the BBC). Much of this work is contracted to Capita which specialises in Outsourcing for government projects. The licence fee can be paid annually, monthly or quarterly by Direct Debit , or monthly or weekly with the Monthly Cash Plan or Cash Easy Entry cards, which were introduced in the mid-1990s for those with limited means or no bank account. The Monthly Cash Plan works on the same basis as the Cash Easy Entry scheme and has been designed so as not to discriminate against those that don't receive benefits. In the UK, the Bailiwick Of Guernsey and the Isle Of Man , free television licences are available for households with a member aged over 75. These are funded by the Department Of Work And Pensions in the UK, and in the Crown dependencies by the respective governments. The States Of Jersey did not opt to extend this concession to their island.1 On the Isle of Man, pensioners under 75 who receive income support are also eligible for free licences. The funding is provided by the Manx Department of Health and Social Security. Licences are available at a 50% reduced rate for the blind. Those aged over 60 and in a residential care home (including nursing homes, public-sector sheltered housing and almshouses) can obtain an ''Accommodation for Residential Care'' (ARC) licence for £7.50 per year. HISTORY When first introduced on 1 June 1946 , the licence covering the monochrome-only single-channel BBC television service cost £2, the equivalent of £57 in 2006. On 1 January 1968 , a 'colour supplement' of £5 was added to the existing £5 monochrome licence fee; the combined colour licence fee was therefore £10, the equivalent of £120 in 2006. The current cost is £135.50 ( As Of 2007 – about € 200 or US$ 270) for colour TV and £45.50 for monochrome TV, per household. A similar licence, mandated by the 1904 Wireless Telegraphy Act, used to exist for radios, but was abolished in 1971 . These licences were originally issued by the General Post Office (GPO), which was then the regulator of public communications within the UK. For a more detailed historical explanation see British Broadcasting Company . LICENCE FEE EXPENDITURE The BBC2 gives the following figures for expenditure of licence fee income:
The BBC World Service on radio is funded by the Foreign And Commonwealth Office and not the licence fee. BBC World and the BBC's other international television channels are operated commercially and do not receive licence fee money. As they include advertisements, they cannot be promoted in the UK. PUBLIC OPINION |
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